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612-822-4611
Diversification of the loan portfolio and banking profitability

Diversification of the loan portfolio and banking profitability

Paperback

Accounting

ISBN10: 6630077709
ISBN13: 9786630077704
Publisher: Our Knowledge Publishing
Published: May 24 2026
Pages: 80
Weight: 0.26
Height: 0.19 Width: 6.00 Depth: 9.00
Language: English
In the context of the pursuit of profitability, banks are increasingly adopting a strategy of product diversification. The aim of our study is to analyse and empirically test the influence of loan portfolio diversification on bank profitability. The theoretical and empirical approach consists of two stages. The first stage involves examining loan portfolio diversification as a determinant of bank profitability. The second stage involves clarifying the contribution of loan portfolio diversification to bank profitability. The econometric approach used involves a time-series analysis based on consolidated data from the Cameroonian banking sector covering the period 2000-2008. The empirical results of our analysis largely corroborate the theoretical debates, but other results do not align with the predictions of economic theory due to the specific characteristics of the structure of the Cameroonian banking and financial system and the national economy in general.

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